For the financial year ended 31 December 2015
61
ANNUAL REPORT 2015
2. SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(c) Group accounting
(continued)
(2) Associated companies (continued)
(iii) Disposals
Gains and losses arising from partial disposals or dilutions in investments in associated companies in
which significant influence is retained are recognised in profit or loss.
Investments in associated companies are derecognised when the Group ceases to have significant
influence. If the retained equity interest in the former associated company is a financial asset,
the retained equity interest is measured at fair value. The difference between the carrying amount of
the retained interest at the date when significant influence ceases and its fair value is recognised in
profit or loss.
Please refer to Note 2(g) for the Company’s accounting policy on investments in subsidiaries and
associated companies.
(d) Property, plant and equipment
(1) Leasehold land and buildings
Leasehold land and buildings are stated at cost less accumulated depreciation and accumulated impairment
losses (Note 2(h)(2)).
(2) Plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses
(Note 2(h)(2)).
(3) Components of costs
The cost of an item of property, plant and equipment includes its purchase price and any cost that is directly
attributable to bringing the asset to the location and condition necessary for it to be capable of operating in
the manner intended by management. The projected cost of dismantlement, removal or restoration is also
included as part of the cost of property, plant and equipment if the obligation for dismantlement, removal
or restoration is incurred as a consequence of acquiring or using the asset.
(4) Depreciation
Depreciation is calculated using a straight-line method to allocate the depreciable amounts of property,
plant and equipment over their estimated useful lives as follows:
Leasehold land and buildings
-
50 years or over the term of the lease, whichever is shorter
Plant and equipment
-
4 to 10 years
Construction-in-progress assets are not depreciated until they are brought to use. Fully depreciated assets
are retained in the financial statements until they are no longer in use.
NOT E S TO T H E F I NAN C I A L S TAT EME N T S
(CONTINUED)
